Tuesday 29 March 2011

Guest column: Gulf states should cut foreign labour and promote local employment | beyondbrics – FT.com

Farouk Soussa, CitigroupBy Farouk Soussa of Citigroup

Gulf countries need to wean themselves off cheap foreign labour for greater social stability.

The goals of those protesting across the Middle East vary greatly from country to country but one thing that most have in common is a sense of frustration with their economic situation, at the heart of which is a lack of suitable jobs. And one step that the authorities in Gulf countries could take is to limit the inflow of foreign workers to promote greater local employment.

The role that unemployment has played in sparking the events that ultimately led to regime change in Tunisia and Egypt has been widely discussed in the media and elsewhere. Protesting Jordanians and Omanis have not called for regime change but for a better standard of living, complaining first and foremost about a lack of employment. Even in Bahrain, unequal job opportunities between the Shia and Sunni populations are at the core of what is otherwise seen as a sectarian crisis. Countries with high unemployment rates are widely regarded in the market as possible candidates for future unrest.

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